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Breaking News: XRP Projected To Reach $8 By 2026: Standard Chartered Identifies Two Major Catalysts
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Breaking News: XRP Projected To Reach $8 By 2026: Standard Chartered Identifies Two Major Catalysts

Bitcoin 4-Hour RSI Hits Oversold Zone – Is A BTC Rebound Near?

Ash Tiwari
Ash Tiwari
Last Updated: February 4, 2025 3:30 am
3 mins read
bitcoin

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Bitcoin (BTC) has had a volatile 24 hours, plunging from $99,500 to as low as $91,231 amid mounting concerns over impending US trade tariffs on Canada, Mexico, and China. However, some crypto analysts see this sharp decline as a buying opportunity, suggesting that BTC may be oversold and poised for a rebound.

Is Bitcoin Poised For A Relief Rally?

Yesterday, the crypto market experienced one of its largest sell-offs in history, with over $2.3 billion in liquidations affecting more than 742,000 traders. This level of liquidations surpasses those seen during the COVID market crash in March 2020 and the FTX collapse in November 2022.

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Despite the downturn, some analysts argue that BTC may have entered oversold territory, signaling a potential relief rally. Crypto analyst Caleb Franzen shared insights in a post on X, highlighting that Bitcoin’s 4-hour Relative Strength Index (RSI) has dipped into oversold levels. He noted:

For the 5th time since August 2024, Bitcoin’s 4-hour RSI is becoming oversold. Each of the prior signals were attractive accumulation periods, even if price made new short-term lows after the signal flashed.

For the uninitiated, the RSI is a momentum indicator that measures the speed and magnitude of recent price changes to determine whether BTC is overbought or oversold. A reading above 70 suggests overbought conditions – potential for a pullback – while a reading below 30 indicates oversold conditions – potential for a rebound.

According to Franzen’s chart, Bitcoin’s current RSI is hovering around 24 on the 4-hour timeframe, indicating that BTC may be in an attractive accumulation zone. If historical trends hold, BTC could be on the verge of a short-term recovery.

RSI
Source: Caleb Franzen on X

Is There More Trouble For BTC Ahead?

As of the latest updates, Donald Trump and his Mexican counterpart Claudia Sheinbaum have agreed to temporarily delay the proposed trade tariffs, offering some relief to financial markets. However, uncertainty remains regarding trade negotiations with Canada, leaving investors cautious about BTC’s next move.

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Is The Crypto Market ‘Satiated’ For Now? Analysts Say Bitcoin Will Continue Sideways Move

11 months ago

Meanwhile, fellow crypto analyst Johnny’s analysis indicates that “the meat” of BTC’s current down move is likely over. The analyst added that as long as BTC continues to trade above range lows and the yearly open, it will “look good compared to the rest of the market.”

However, not all experts are optimistic. Renowned businessman and author Robert Kiyosaki warns that BTC could face further downside pressure if Trump follows through with his tariff plans. 

According to Kiyosaki, increased tariffs could strengthen the US dollar, potentially driving investors away from risk assets like Bitcoin in the short term. At press time, BTC trades at $98,644, up 0.4% in the past 24 hours.

bitcoin
BTC trades at $98,644 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash, Charts from X and TradingView.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

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Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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